SICAV
Global Technology Equity Fund
To provide long-term capital growth by investing mainly in technology companies, and companies enabled by technology.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 15-Jun-2015
Performance figures calculated in USD
Strategy
The macroeconomic crosswinds that created difficulties for investors all year continued to affect investments in the third quarter. Inflation, fluctuating interest rates, COVID-19 shutdowns, and sporadic reopenings led to bouts of volatility. However, despite this demanding backdrop, we are pleased with the fundamentals of the stocks we own. Many of these companies capitalized on the pulled-forward demand for their services by investing in new products and markets. Many of these strategic investments have resulted in accelerated top- and bottom-line growth this year.
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While disruption from the pandemic and distortions in the global economy, including hiring problems and semiconductor supply shortages, weighed on technology companies and their customers, we observed that the market began to focus more on underlying fundamentals than lapping year-over-year comparisons. In software, for instance, we witnessed a greater dispersion of outcomes as enterprise-focused segments demonstrated durable growth in contrast to more mixed results from consumer-driven segments. We expect that as many of the cloud-based software-as-a-service companies grow, they will continue to leverage their fixed costs and expand gross margins so as to generate even higher levels of free cash flow. In internet, our positioning reflects the opportunities we see in concentrating on winning e-commerce and social media companies across the globe. Many of these platform companies have been able to use their strong market positions, bolstered during the pandemic, to expand their offerings and create their own durable growth.
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In seeking global secular growth stocks, we recognize the varied opportunities presented to us regionally.� In China, for instance, we are carefully assessing the competitive landscape to identify those companies that are well positioned to continue to generate value for investors. Those Chinese internet companies with management teams with experience in leading their organizations through previous periods of regulation can leverage that knowledge to better weather the current storm. On the other hand, those companies that entered the current cycle on a weak footing will likely find that increased regulation will compound their problems. As always, our investment decisions are informed by our comprehensive and collaborative global research team. In this regard, our China-based analysts worked tirelessly with other internet analysts on the team to adjust our models to identify the most attractive opportunities. These insights may help us evaluate similar businesses that are navigating regulatory challenges elsewhere.
Investment Objective
To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks of technology development or utilization companies, with a focus on leading global technology companies. The companies may be anywhere in the world, including emerging markets.Investment Approach
- Seeks long-term growth by investing primarily in the common stocks of companies that generate the majority of revenues from the development, advancement, and use of technology.
- Stock selection is driven by rigorous research and analysis of companies, sectors, and industry trends.
- The portfolio invests primarily in the common stocks of technology companies or companies enabled by technology across the entire market capitalization spectrum. We seek companies which can successfully weather economic cycles and deliver sustainable growth through product development and innovation, at a reasonable valuation.
- While our primary emphasis is on a company’s prospects for future growth, valuation can also be an important consideration, particularly when valuation reaches extreme levels.
- The portfolio is less diversified than a non-focused fund and its substantial reward potential is coupled with significant risk. In addition, any foreign holdings could be affected by declining local currencies or adverse political or economic events.
- Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.
Portfolio Construction
- Typically 35-60 stock portfolio
- Non-U.S. companies typically make up 25-45% of the portfolio
- Portfolio consists of highest conviction ideas from a global perspective
- Diversification across sectors, countries/currencies, and end markets is a risk management tool
- Bottom-up stock picking is used to capitalize on rapid and extreme changes in technology trends
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
Since Manager Inception Annualised |
|
|---|---|---|---|---|---|
| Fund % | 48.17% | 41.34% | 29.25% | 26.01% | 37.81% |
| Indicative Benchmark % | 45.32% | 33.17% | 28.04% | 23.53% | 35.63% |
| Excess Return % | 2.85% | 8.17% | 1.21% | 2.48% | 2.18% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
Since Inception Annualised |
|
|---|---|---|---|---|
| Fund % | 35.63% | 32.63% | 27.26% | 24.95% |
| Indicative Benchmark % | 30.26% | 26.11% | 26.21% | 22.62% |
| Excess Return % | 5.37% | 6.52% | 1.05% | 2.33% |
Recent Performance
| Month to DateData as of 26-Nov-2021 | Quarter to DateData as of 26-Nov-2021 | Year to DateData as of 26-Nov-2021 | 1 MonthData as of 31-Oct-2021 | 3 MonthsData as of 31-Oct-2021 | |
|---|---|---|---|---|---|
| Fund % | -1.69% | 5.71% | 19.81% | 7.53% | 6.43% |
| Indicative Benchmark % | 1.46% | 8.22% | 22.41% | 6.66% | 4.35% |
| Excess Return % | -3.15% | -2.51% | -2.60% | 0.87% | 2.08% |
Past performance is not a reliable indicator of future performance. Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures. Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.
Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.
Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 July 2018, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.
Holdings
Total
Holdings
49
Largest Top Contributor^
Sea
Largest Top Detractor^
Shopify
Top Purchase
MongoDB (N)
1.51%Top Sale
Crowdstrike Holdings (E)
0.00%
Industry
Total
Industries
N/A
Regions
Total
Regions
5
Largest Overweight
Pacific Ex Japan
Largest Underweight
Japan
Countries
Total
Countries
10
Largest Overweight
Singapore
Largest Underweight
United States
Fee Schedule
| Share Class | Minimum Initial Investment and Holding Amount (USD) | Minimum Subsequent Investment (USD) | Minimum Redemption Amount (USD) | Sales Charge (up to) | Investment Management Fee (up to) | Ongoing Charges | UK Tax Reporting Status |
|---|---|---|---|---|---|---|---|
| Class A | $1,000 | $100 | $100 | 5.00% | 175 basis points | 1.87% | Yes |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 85 basis points | 0.94% | No |
| Class Q | $1,000 | $100 | $100 | 0.00% | 85 basis points | 0.97% | Yes |
| Class S | $10,000,000 | $0 | $0 | 0.00% | 0 basis points | 0.06% | No |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
T. Rowe Price Funds SICAV and its sub-funds are domiciled in Luxembourg and therefore considered offshore funds for UK tax purposes. Selected share classes of T. Rowe Price Funds SICAV have been designated “Reporting Funds” by HM Revenue & Customs (HMRC) under the guidelines of the UK Offshore Funds Regulation. These share classes report all relevant tax information to HMRC on an annual basis. Details on the information reported are outlined in the SICAV Shareholder Tax Reporting document that is available in the Fund Range Docs drop-down. Investors in “Reporting Fund” share classes who are considered United Kingdom residents for tax purposes will have any accrued gains treated as a capital gain rather than income upon sale or other disposal of their shares.
Alan Tu is the portfolio manager for the Global Technology Equity Strategy in the U.S. Equity Division. He also is chairman of its Investment Advisory Committee. Alan is a vice president and an Investment Advisory Committee member of the US Small-Cap Growth II Equity, Science & Technology Equity, US Large-Cap Core Growth Equity, Communications and Technology Equity, and US Tax-Efficient Multi-Cap Growth Equity Strategies. In addition, he is an Investment Advisory Committee member of the Global Growth Equity Strategy. Alan also is a vice president of T. Rowe Price Group, Inc.